Markup

  • A percentage added by the stakee for a staking offer or shares, that decreases the stakers win percentage. Usually used in cases of the stakee having a big edge against the field, or simply based of the popularity of the staking.
    Charging a markup from stakers can be justified or plain robbage, depending on the quality of the stakee's game.

    Usually markups are charged by a stakee selling shares, if a player thinks he is that good that the risk of ruin for the stakers can be much more reduced by their edge, making the staking more attractive. Resulting in a lot of interested staking parties and such making the shares more valuable due to their limited supply.

    Popular players, especially those who livestream, tend to charge markup too. Also based on the big interested of people becoming involved as stakers in order to have a bigger "sweat" when the staking gets livestreamed, but they don't have to back that up with equal skill due to their popularity creating enough of a shortage in order to charge premium.

    Markup is always a percentage of the winnings collected by the stakee deducted from the staker's win percentage.

    Markup is either deducted ahead of the staking, or after if a winning result is reached.

    Examples

    Example A:

    The stakee offers a share package of $2000 and keeps 50% as own action. Now he charges a markup of 1.1:1 or 10%, which means that the staker is getting a 50% profit share on a total of $1000 in shares, but have to pay $1100 in total to the stakee to get those as the stakee wants the markup up front.
    The stakee is getting a 50% profitshare of the winnings but effectively only contributs 45% of the funds.

    Example B:

    The stakee offers a share package of $2000 and keeps 10% as own action. He also charges a markup fee, this time 1.2:1 or 20%, but will deduct it after winning. So every share goes for the price of 1:1, meaning there are $1800 in shares to be bought at 1:1 initially, but if a winning result is reached these shares only payout at 83% of their value afterwards due to the markup.

    41,278 times viewed